Else Nutrition Holdings Inc (BABYF)

[BruceLake]

Thanks for the summary which is generally positive. For me it is tempered only by the sobering reality and concerns I have with dilution.

Else has been funding its growth by issuing shares. The company will likely need to do a capital raise within a year which will be dilutive to shareholders. It's important to keep an eye on this dilution as there is a risk that the continuation of this strategy will place the company in a position where profitability will not become possible. At this point, as the company has established sales, it is important for investors to monitor going forward that revenue is growing at a faster pace than share count dilution.

I have always maintained that funding the growth of a company by issuing shares is not necessarily negative. Dilution might as well be a four letter word to most investors , but it doesn't have to be if the money is put to good use and used to accelerate revenue. So yes indeed let's monitor the revenue growth and keep our fingers crossed that it does in fact exceed the pace of dilution by a wide margin.

it is important for investors to monitor going forward that revenue is growing at a faster pace than share count dilution.